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Tesla and EPA reach a settlement after Clean Air Act violations

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This aerial view depicts cars that were parked at Tesla Fremont factory in Fremont (California) on February 10, 2022.

Getty Images| AFP | Getty Images

TeslaAfter regulators found that Elon Musk’s solar and electric vehicle business violated the Clean Air Act, the U.S. Environmental Protection Agency reached a settlement.

According to announcement from the EPA on Tuesday, Tesla will pay a penalty of $275,000 — immaterial to a business that reported $2.3 billion in net income during the fourth quarter of 2021.

The EPA stated that Tesla had violated the National Emission Standards for Harmful Air Pollutants for Automobile Surface Coating from October 2016 to September 2019, Fremont.

As CNBC previously reported,The Fremont-based Tesla car plant’s paint shop was the victim of multiple fires in those years. CNBC reported that employees had told CNBC in 2018 that the filters under the paint booths, and the exhaust system, which were meant to clean the building and bring air into it, had been covered with paint and clearcoat for months.

According to the EPA, Tesla did not “develop or implement a practice plan to reduce hazardous air-pollutants emission from vehicle-coating operations storage and mix of materials.”

Tesla, which claims to be a sustainable company, did not even take emissions measurements from its coating operations and didn’t keep the legally required records regarding its dangerous air-pollutant emission rates. According to an EPA announcement,

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